can i please get an answer

Question

Eric borrowed $8000 at a rate of 14%, compounded semiannually. Assuming he makes no payments, how much will he owe after 4 years?Do not round any intermediate computations, and round your answer to the nearest cent.

$_______

Answer 1

I'm using an interest formula:

fv=p(1+int/c)^(nt)

future value

principal

int

compound .5/yr?

yrs

times/yr

fv=8000(1+.14/.5)/(4*.5)

=$13,107.20

Or is it 2/yr?

=$13745.49

Answer 2

The equation that models this situation is:

A(t) = A₀(1 + r/n)^nt

where:

A is the amount he owes at any time (t)

A₀, is the initial amount borrowed (the amount owed at time t = 0)

n is the number of times the loan is compounded annually (in this case n = 2)

r is the interest rate in decimal form (in this case r = 0.14)

So A(4) = 8000(1 + 0.14/2)^2•4

A(4) = 8000(1 + 0.07)⁸

A(4) = 8000(1.07)⁸

A = $13,745.49